On July 14, 2018 a
Exhibit,Appendix
was filed
involving a dispute between
Ellyn Berk,
Pamela Goldstein,
Paul Benjamin,
Tony Berk,
and
Houlihan Lawrence Inc.,
for Commercial Division
in the District Court of Westchester County.
Preview
FILED: WESTCHESTER COUNTY CLERK 07/14/2018 08:37 PM INDEX NO. 60767/2018
NYSCEF DOC. NO. 52 RECEIVED NYSCEF: 07/14/2018
FILED: WESTCHESTER COUNTY CLERK 07/14/2018 08:37 PM INDEX NO. 60767/2018
4/12/2017 Designated Agency- -
Is It Fraud? | CAAREConsumer Advocates in AmericanReal Estate
NYSCEF DOC. NO. 52 RECEIVED NYSCEF: 07/14/2018
r P f
II
CAARE
ConsumerAdvocatesh ArnericanRealEstate
Search
About Buyer Seller Professional Help Us Resources Alerts News
Home
$5 or $10 a month would help!
Designated - Is It Fraud?
Agency
Donate
Agents from the same brokerage firm cannot negotiate on behalf of buyers and sellers in
"legalized" We reallyneed you!
the same transaction. Despite heavily lobbied forlaws that have thisimpossible
relationship,designated agency is a legal
fictionthatharms consumers. Just because it is legal, And it is tax
deductible!
does notmean that or
it is good appropriateforconsumers. Designated agency serves onlythe
interestsofthe real estatebrokerage firmthat desires to collect
a double commission at the
expense ofappropriate clientrepresentation. If youagree to designated agency, you willbe giving
Services thatmight save you
up the righttohonest representation and you will
be puttingthe brokerage firmin a position
to
money or protect you better
manipulate your transaction in ordertocollecta double fee.
SellerDiscount Brokers - save
Designated - A fictional that occurs when alltheparties (thebrokerage firm, your equity.
agency relationship
both agents and thebuyers and sellers)are involvedin thesame transaction. In designated
Exclusive Buyer Brokers - real
agency, the buyers and sellersaretold thattheiragents can negotiate against each other even
though firm cannot. buyer agents.
the brokerage thatis supervisingthose agents
Buyer Brokers Who Rebate
Designated agency is worsethan dual agency. States that allowdesignated agency as a form of - rebates
"representation," Fees for buyers.
have legalized theintentionalmisrepresentation of dual agency. Designated
agency is servingtwo masters but disclosingthat you represent each of them exclusively. We Independent Title
Companies -
believe fraud.
it is legalized Designated agency is notlegalforany other profession. Even with
unaffiliated otherservice
lawyers, who have received postgraduate trainingon how to manage conflictsofinterest,cannot providers.
legallyengage in designated agency.
In orderto understand designated agency, you must first
understand thatwhen you hire a real
estate agent you are reallyhiringthe agent'sbrokerage firm,not theindividualagent. Real estate
licensingis a two-tieredsystem designed to protectconsumers by requiring thatan experienced
realestate broker (broker's maintain a supervisory roleover theirlessexperienced real Help CAARE for FREE
licensee)
estate sales people orlicensees. Brokers are heldto higher entrystandards than salespeople (or
agents). Brokers are responsible tosupervise theiragents. Only brokers may hold contractswith at AmazonSmile
Shop
clients.Agents are merely agents of thebroker, notconsumers. When you hirea broker (justlike
when you hire a lawyerin a lawfirm),allthe agents in thefirmrepresent whomever the broker and Amazon willmake
represents (they allshould represent you). That is why lawyers must conduct check
a conflict at a donation to:
theirentirelaw firm beforeagreeing torepresent you. Consumer AdvocatesIn
American Real Estate Inc
Dual agency and designated agency areextremely for
profitable brokerage firms and extremely
bad for consumers. Real estate firmsget paiddouble (both halvesof the commission) if both
the
buyer and sellerareprocured from thesame firm.Consumers are stripped oftheirrepresentation oetstarted
with little
warning orput in a position
where the brokerage firm is financially
rewarded for
manipulating theiradvice. amaZ0nSmle
In designated agency, the brokerage firm is a dualagent and is prohibitedfrom negotiatingon
behalf ofeitherparty. However, the supervisingbroker designates one agent to represent the
buyer and another thesellerin thesame transaction. It presentsseveral impossible relationships
with enormous conflictsofinterests. Forexample, even though the broker is a dual
agent and is
prohibitedfrom negotiating,thebroker somehow emparts those powers ofnegotiation tothe
agents who work for thefirm. How is thebroker going tosupervise these agents when negotiation
issues present themselves? How is thebroker going tosupervise the agents when the broker
stands to collecta double commission if supervisionis givenin a way thatprefersone buyer over
another? How are agents going tobe prevented from manipulating the transactionin orderto
preferthe double commission transactionover the transactionfrom an agent from another firm?
Any honest attorneywho understands agency law would callthisfictional
relationship
preposterous. Designated agency is a dichotomyof two mutually exclusive promises. The
brokerage firmpromises thatas a dual agenct thatthey willnotengage in negotiation,but thatthey
http://www.caare.org/DesignatedAgency 1/2
FILED: WESTCHESTER COUNTY CLERK 07/14/2018 08:37 PM INDEX NO. 60767/2018
4/12/2017 DesignatedAgency - -
Is It Fraud? | CAAREConsumer Advocates in AmericanReal Estate
NYSCEF DOC. NO. 52 RECEIVED NYSCEF: 07/14/2018
willhelp theiragents negotiate againsteach other. It just
makes no sense. Yet Realtor
Associations allover the country have used theirenormous lobbying power to persuade legislators
to legalizethissubterfuge thatcould easilyplay an important rolein creatingmore realestate
bubbles and mortgage foreclosurecrisis's.
Designated agency does not justcreate an appearance of impropriety,it encourages dishonest
conduct by putting brokerage firms in thepositionof being ableto manipulate real estate
transactions totheirown benefit.
Imagine thedesignated agency transaction where thebrokerage firmis managing a multipleoffer
transaction in whichthe firmrepresents the sellerand one of thebuyers. The otherbuyers are
from outside firms. The firmstands to collecta double commission (often an extra$12,000) if a
transaction occurs withthe buyer agent from within thefirm. Even though the individualagents are
engaged in activenegotiations and are supposed to be prohibitedfrom seeing the offersof the
competing agents, the brokerwho is responsiblefor managing the agents and the transactionand
"supervise" "manage"
the broker is privy
to thisnegotiationinformation. How willthe broker and
thistransaction? What kind ofsupervision can be expected in thissituation?
What if the
broker is aware thatif their
buyer were toofferan additional$500 in earnestmoney
thatthe insidetransaction would have the advantage? What if the
broker is aware thatthe buyer
from the outside firmis better
qualifiedand more likelytocomplete the transactionthan the buyer
with theinside agent? There are hundreds of examples likethis.
With little
effort
and no paper designated
trail, agency puts brokers in a position
in which they are
rewarded
financially foradvising buyers and sellerstoenter intoreal estatetransactions thatthey
otherwise would nothave done. Designated agency makes brokers privy toprivatenegotiating
information forwhich they otherwise would nothave had. Designated agency encourages
misguided supervision ofagents and management duties required by licensinglaw. Designated
agency purports tocreate a legalfiction
that impossibly grantsthe broker's agents more
negotiating power than is possessed bythe broker.
The concept ofdesignated agency servesone purpose. It servestoput brokers in a position
to
manipulate buyers and sellersto increasethe occurrence ofdouble commissions.
Clickhere to read an article
about a letter
we wroteto Maryland's legislatureabout designated
agency.
Log in or register to post comments
http://www.caare.org/DesignatedAgency 2/2
Document Filed Date
July 14, 2018
Case Filing Date
July 14, 2018
Category
Commercial Division
For full print and download access, please subscribe at https://www.trellis.law/.
Preview
FILED: WESTCHESTER COUNTY CLERK 07/14/2018 08:37 PM INDEX NO. 60767/2018 NYSCEF DOC. NO. 52 RECEIVED NYSCEF: 07/14/2018 FILED: WESTCHESTER COUNTY CLERK 07/14/2018 08:37 PM INDEX NO. 60767/2018 4/12/2017 Designated Agency- - Is It Fraud? | CAAREConsumer Advocates in AmericanReal Estate NYSCEF DOC. NO. 52 RECEIVED NYSCEF: 07/14/2018 r P f II CAARE ConsumerAdvocatesh ArnericanRealEstate Search About Buyer Seller Professional Help Us Resources Alerts News Home $5 or $10 a month would help! Designated - Is It Fraud? Agency Donate Agents from the same brokerage firm cannot negotiate on behalf of buyers and sellers in "legalized" We reallyneed you! the same transaction. Despite heavily lobbied forlaws that have thisimpossible relationship,designated agency is a legal fictionthatharms consumers. Just because it is legal, And it is tax deductible! does notmean that or it is good appropriateforconsumers. Designated agency serves onlythe interestsofthe real estatebrokerage firmthat desires to collect a double commission at the expense ofappropriate clientrepresentation. If youagree to designated agency, you willbe giving Services thatmight save you up the righttohonest representation and you will be puttingthe brokerage firmin a position to money or protect you better manipulate your transaction in ordertocollecta double fee. SellerDiscount Brokers - save Designated - A fictional that occurs when alltheparties (thebrokerage firm, your equity. agency relationship both agents and thebuyers and sellers)are involvedin thesame transaction. In designated Exclusive Buyer Brokers - real agency, the buyers and sellersaretold thattheiragents can negotiate against each other even though firm cannot. buyer agents. the brokerage thatis supervisingthose agents Buyer Brokers Who Rebate Designated agency is worsethan dual agency. States that allowdesignated agency as a form of - rebates "representation," Fees for buyers. have legalized theintentionalmisrepresentation of dual agency. Designated agency is servingtwo masters but disclosingthat you represent each of them exclusively. We Independent Title Companies - believe fraud. it is legalized Designated agency is notlegalforany other profession. Even with unaffiliated otherservice lawyers, who have received postgraduate trainingon how to manage conflictsofinterest,cannot providers. legallyengage in designated agency. In orderto understand designated agency, you must first understand thatwhen you hire a real estate agent you are reallyhiringthe agent'sbrokerage firm,not theindividualagent. Real estate licensingis a two-tieredsystem designed to protectconsumers by requiring thatan experienced realestate broker (broker's maintain a supervisory roleover theirlessexperienced real Help CAARE for FREE licensee) estate sales people orlicensees. Brokers are heldto higher entrystandards than salespeople (or agents). Brokers are responsible tosupervise theiragents. Only brokers may hold contractswith at AmazonSmile Shop clients.Agents are merely agents of thebroker, notconsumers. When you hirea broker (justlike when you hire a lawyerin a lawfirm),allthe agents in thefirmrepresent whomever the broker and Amazon willmake represents (they allshould represent you). That is why lawyers must conduct check a conflict at a donation to: theirentirelaw firm beforeagreeing torepresent you. Consumer AdvocatesIn American Real Estate Inc Dual agency and designated agency areextremely for profitable brokerage firms and extremely bad for consumers. Real estate firmsget paiddouble (both halvesof the commission) if both the buyer and sellerareprocured from thesame firm.Consumers are stripped oftheirrepresentation oetstarted with little warning orput in a position where the brokerage firm is financially rewarded for manipulating theiradvice. amaZ0nSmle In designated agency, the brokerage firm is a dualagent and is prohibitedfrom negotiatingon behalf ofeitherparty. However, the supervisingbroker designates one agent to represent the buyer and another thesellerin thesame transaction. It presentsseveral impossible relationships with enormous conflictsofinterests. Forexample, even though the broker is a dual agent and is prohibitedfrom negotiating,thebroker somehow emparts those powers ofnegotiation tothe agents who work for thefirm. How is thebroker going tosupervise these agents when negotiation issues present themselves? How is thebroker going tosupervise the agents when the broker stands to collecta double commission if supervisionis givenin a way thatprefersone buyer over another? How are agents going tobe prevented from manipulating the transactionin orderto preferthe double commission transactionover the transactionfrom an agent from another firm? Any honest attorneywho understands agency law would callthisfictional relationship preposterous. Designated agency is a dichotomyof two mutually exclusive promises. The brokerage firmpromises thatas a dual agenct thatthey willnotengage in negotiation,but thatthey http://www.caare.org/DesignatedAgency 1/2 FILED: WESTCHESTER COUNTY CLERK 07/14/2018 08:37 PM INDEX NO. 60767/2018 4/12/2017 DesignatedAgency - - Is It Fraud? | CAAREConsumer Advocates in AmericanReal Estate NYSCEF DOC. NO. 52 RECEIVED NYSCEF: 07/14/2018 willhelp theiragents negotiate againsteach other. It just makes no sense. Yet Realtor Associations allover the country have used theirenormous lobbying power to persuade legislators to legalizethissubterfuge thatcould easilyplay an important rolein creatingmore realestate bubbles and mortgage foreclosurecrisis's. Designated agency does not justcreate an appearance of impropriety,it encourages dishonest conduct by putting brokerage firms in thepositionof being ableto manipulate real estate transactions totheirown benefit. Imagine thedesignated agency transaction where thebrokerage firmis managing a multipleoffer transaction in whichthe firmrepresents the sellerand one of thebuyers. The otherbuyers are from outside firms. The firmstands to collecta double commission (often an extra$12,000) if a transaction occurs withthe buyer agent from within thefirm. Even though the individualagents are engaged in activenegotiations and are supposed to be prohibitedfrom seeing the offersof the competing agents, the brokerwho is responsiblefor managing the agents and the transactionand "supervise" "manage" the broker is privy to thisnegotiationinformation. How willthe broker and thistransaction? What kind ofsupervision can be expected in thissituation? What if the broker is aware thatif their buyer were toofferan additional$500 in earnestmoney thatthe insidetransaction would have the advantage? What if the broker is aware thatthe buyer from the outside firmis better qualifiedand more likelytocomplete the transactionthan the buyer with theinside agent? There are hundreds of examples likethis. With little effort and no paper designated trail, agency puts brokers in a position in which they are rewarded financially foradvising buyers and sellerstoenter intoreal estatetransactions thatthey otherwise would nothave done. Designated agency makes brokers privy toprivatenegotiating information forwhich they otherwise would nothave had. Designated agency encourages misguided supervision ofagents and management duties required by licensinglaw. Designated agency purports tocreate a legalfiction that impossibly grantsthe broker's agents more negotiating power than is possessed bythe broker. The concept ofdesignated agency servesone purpose. It servestoput brokers in a position to manipulate buyers and sellersto increasethe occurrence ofdouble commissions. Clickhere to read an article about a letter we wroteto Maryland's legislatureabout designated agency. Log in or register to post comments http://www.caare.org/DesignatedAgency 2/2